INTERTANKO / Braemar Seascope Seminar

OIL & CHEMICAL SHIPPING TODAY

Shanghai

2 March 2005

Peter M. Swift

2005 : INTERTANKO DATES FOR THE DIARY

March 3-4 TradeWinds-Mare Forum / SHIPPING China 2005, Shanghai

April 10-13 International Tanker Forum, Athens

Sept (tba) Vetting seminars, Singapore / China / Other

Nov 4 Asian Panel (TBC)

Dec 8 ITOPF/INTERTANKO/OCIMF Oil Spill seminar, Shanghai

Dec 9 INTERTANKO Tanker seminar

INTERTANKO International Tanker Forum

Athens Tanker Event10-13 April 2005

Sponsored by:

The Tanker Industry

THE POLITICAL SCENE

The changing maritime landscape

The changing maritime landscape

• Politicization of technical regulation • Threat to authority of IMO• Threat to international law• Criminalisation of companies and

seafarers

Regulations have contributed to improvement in maritime safety...

…..protection of life at sea

Source: Lloyd’s Register Fairplay

and environmental protection

Source: ITOPF. Number of spills above 700 tonnes.

...notwithstanding growth in size of maritime trade

Source: Fearnleys Review

Key industry goals

• Regulatory environment which supports safe shipping operations, environmental protection and adherence to internationally adopted standards and procedures

• Properly considered international regulation of shipping

• Global regulation for a global industry, adopted and implemented uniformly

Tanker industryTanker industry

Increasing politicization of regulationExamples:• Phase out of single hull tankers• West European Particularly Sensitive Sea Area • Moves to open up CLC/Fund Convention and link with

substandard shipping• Penal sanctions adopted by EU, criminalising accidental

pollution• Maritime security (e.g hijacking of AIS)

Why? Port states versus flag states, and reduced influence of maritime constituency

HOW IT WAS: Examples of positive regulatory developments (the “IMO spirit”)

• ISM Code and STCW (training)• post ‘Estonia’ passenger ferry measures• IMO bulk carrier safety package• Development of ILO ‘Super Convention’

Outcomes broadly based on technical merits of arguments put forward. Industry viewpoint understood, if not always accepted.

CHALLENGES TO INDUSTRY GOVERNANCEInternational vs. local, national and regional

• Liability – EU Criminal penalties vs. International Conventions

• Safety & Environment – EU (Post Erika & Prestige) vs. IMO/Marpol & SOLAS

• Sulphur Levels / Air Emissions – EU, USA vs. IMO

• Security – MTSA vs. ISPS

• Ballast Water Management – US et al vs. IMO

HOW IT IS: The Challenges Today

• More political drivers and less consideration of the technical, operational, and commercial interests

• More unworkable, inconsistent and illogical regulation and less consideration of the practical aspects

• More pressure for local / regional regulation and less willingness to adopt and apply international regulation

Threat to authority of IMO

Global industry needs global regulation

• IMO agreed to acceleration of single hull phase-out (twice), but under duress

• EU Directives going beyond MARPOL

• Interference of UN in New York – genuine linkage to flag

Threat to international law

• Escorting of single hull tankers out of EEZ by Spain, France et al, in contravention of MARPOL and UNCLOS obligations

• Detention of seafarers, e.g. in Spain and Pakistan in contravention of UNCLOS

• Adoption of Criminal Penalties Directive for ship-source pollution

• European Commission suggestion that UNCLOS might be revised to alter the balance between flag states and coastal states.

• Willingness of EU to implement measures in conflict with MARPOL

Criminalization

• Imprisonment of seafarers (Captain Mangouras et al)

• Activities of US Department of Justice (bounty for whistle blowers)

• EU Directive on Criminal Penalties (including accidental damage)

• SUA (Suppression of Unlawful Acts) Convention

Political Action

• In Brussels

• In the US

• Internationally

Action in Brussels• Luxembourg then UK Presidency, New Commissioner

and Commission staff, New Parliament and MEPs

• Sulphur levels in fuels still a major issue

• EMSA Double Hull panel making progress ?

• New Maritime safety Package under discussion – “MSP III / Erika III”

Commission(The executive)

Brussels - The main ”players”

EuropeanParliament

(Direct election)Council

(Member States)

EMSA

Interacting with the Commission

Jacques Barrot

Commissioner for Transport

Francois Lamoureux

Fotis Karamitsos

Director General

Director for maritime policy

M. Burgelle-Vernet S. Tostman Van Vreckem

Unit staff members

EU Maritime Safety Package III• Amendment to Directive on Vessel Traffic Monitoring and

Information

• Liability and Compensation (principally Passengers)

• Recasting of Legislation on Port State Control

• Role of Classification Societies

• Marine Casualty Investigations in the EU

• Maritime Labour Standards

• Flag State Initiative

But how about earlier programmes – Places of Refuge, Ratification of Conventions, Reception facilities

Action in the US

• Increasing support for signing UNCLOS

• Presidential support for ratification of Annex VI

• Overturning of proposals for escort tugs

BUT

• Pressure at state and federal level for regulation of Air emissions, Ballast Water controls, Spill response and more

• Massachusetts State Law

Action at the International Level

• Ratification of Key Conventions:HNS / Bunker Convention / HNS-OPRC Protocol / AFS

• Action on:Places of Refuge / Port Reception Facilities

• Support for FLAG STATE AUDIT

THE POLITICAL SCENE

The changing maritime landscape

Summary

Seeking solutions – Politicians and regulators versus the

Industry- Everyone has the answer !

Politicians and legislators propose political and legislative solutions

Industry offers technical, operational and procedural solutions

Politicians and public want quick fixes

Industry takes longer term view and cautions against hasty, ill-considered solutions

Whose agenda ? Technical versus Political

Industry advocates heavy fuel oil in only double hulls Politicians demand accelerated single hull phase-out and extra

surveys

Industry advocates new measures at global level Politicians demand regional and local legislation

Industry pushes for Places of Refuge Politicians demand information on ’dangerous’ ships and cargoes

Industry refers to UNCLOS, MARPOL and SOLAS Politicians challenge UNCLOS and MARPOL, and support PSSAs

Industry pushes for Reception facilities Politicians support interceptions and tanker tracking

The drive to Effective Regulation

• Regulatory environment which supports safe shipping operations, environmental protection and adherence to internationally adopted standards and procedures

• Properly considered international regulation of shipping • Global regulation for a global industry, adopted and

implemented uniformly

THE INDUSTRY HAS MUCH WORK TO DO

Thank you 谢谢大家www.intertanko.com

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